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FIRST ON CNBC: CNBC INTERVIEW: TENNESSEE SENATOR BOB CORKER SPEAKS WITH CNBC'S "THE CALL" TODAY

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U.S. Senator Bob Corker (R-TN)
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U.S. Senator Bob Corker (R-TN)

When: Today, Tuesday, November 16th</</p>

Where: CNBC's "The Call"
Following is an unofficial transcript of a First on CNBC interview with Tennessee Senator Bob Corker today on CNBC's "The Call."
All references must be sourced to CNBC.

MELISSA FRANCIS: OK SENATOR BOB CORKER ANNOUNCING IN JUST THE PAST HOUR THAT HE WANTS TO CHANGE THE FED'S DUAL MANDATE FROM TARGETING FULL EMPLOYMENT AND PRICE STABILITY TO TARGETING JUST INFLATION. HE MADE THE ANNOUNCEMENT TODAY AFTER A LENGTHY MEETING WITH FED CHAIRMAN BEN BERNANKE ON MONDAY. CORKER SAID A SINGLE MANDATE WOULD SERVE AMERICA BETTER AND HE JOINS US NOW TO EXPLAIN. STEVE LIESMAN IS GOING TO JOIN US IN THE DISCUSSION AS WELL. SENATOR, THANK YOU SO MUCH FOR JOINING US. EXPLAIN WHY YOU THINK THE FED SHOULD HAVE JUST A SINGLE MANDATE.

SENATOR BOB CORKER: I THINK THE DUAL MANDATE CREATES A LOT OF CONFUSION NOT ONLY AMONG BOARD GOVERNORS BUT THE MARKET IN GENERAL. IT IS SORT OF A BIPOLAR TYPE ACTIVITY. I'VE ALWAYS THOUGHT IT WAS CONFUSING AND IT SEEMS TO ME WE NEED TO BRING CLARITY TO OUR MONETARY POLICY FOCUS IT SOLELY ON PRICE STABILITY I THINK THAT IS BETTER FOR THE FED, I THINK IT IS BETTER FOR OUR COUNTRY, AND CERTAINLY BETTER FOR THE MARKETPLACE.
LARRY KUDLOW: SENATOR CORKER, WOULD YOU USE THE PRICE INDEX, THE CPI, OR THE PERSONAL CONSUMPTION DEFLATOR, WOULD YOU USE KING DOLLAR, REFERENCE TO GOLD AS BOB ZOELLICK HAS SUGGESTED? HOW WOULD YOU GO ABOUT THIS SIR?
CORKER: SO I THINK RIGHT NOW WE ARE USING PCE OBVIOUSLY, AND THERE IS I THINK A DEBATE OCCURRING THERE. THE OTHER DEBATE, LARRY, IS THAT WE ACTUALLY SET THAT INFLATION TARGET OURSELVES THROUGH CONGRESS. I KNOW THAT OTHER COUNTRIES USE TWO PERCENT IT'S FIXED IN, THAT IS THE TARGET SO I THINK ALL OF THOSE THINGS ARE UNDER DISCUSSION. I THINK WE DO NEED TO CHANGE THE MANDATE, HOW FAR WE GO WITH THAT, BY EITHER CHANGING THE INFLATOR OR THE INDEX OR ACTUALLY TARGETING THE EXACT INFLATION RATE IS SUBJECT TO DISCUSSION. I PLAN ON TALKING TO MY COLLEAGUES AND OTHERS ABOUT THAT OVER THE NEXT FEW WEEKS.
TRISH REGAN: SENATOR, IF THE FED HAD THIS SINGLE MANDATE RIGHT NOW, HOW MIGHT THAT CHANGE WHAT THEY ARE DOING?
CORKER: WELL, YOU KNOW, I DON'T KNOW. I MEAN FOR INSTANCE, IF THE FED WERE CONCERNED RIGHT NOW ABOUT DEFLATION, IT MIGHT NOT CHANGE ANYTHING, RIGHT? I DO THINK, THOUGH, THERE'S A LOT OF CONCERN OUT THERE ABOUT THE SUSTAINABLE EMPLOYMENT LEVEL AND PEOPLE THINKING THAT THE FED IS USING MONETARY POLICY TO CREATE ECONOMIC STIMULUS UNJUSTLY, AND I THINK AGAIN, THIS WOULD JUST CLARIFY IT, IT MAY NOT CHANGE A BIT OF THE ACTIONS THAT THEY ARE TAKING. AND BY THE WAY, FOCUSING ON PRICE STABILITY CAN OBVIOUSLY GO HAND IN HAND WITH CREATING MORE FULL EMPLOYMENT. IT'S JUST THAT YOU DON'T HAVE THAT BIPOLAR TYPE OF MANDATE.
STEVE LIESMAN: SENATOR CORKER, DO YOU BELIEVE THE FEDERAL RESERVE IS CREATING MONETARY STIMULUS UNJUSTLY? AND HOW MUCH OF THIS EFFORT, WE HEARD IT YESTERDAY FROM THE HOUSE SIDE, IS MOTIVATED BY OPPOSITION TO WHAT THE FED IS DOING RIGHT NOW?
CORKER: ACTUALLY NONE OF IT IS-- WE'VE BEEN ACTUALLY TALKING ABOUT THIS IN OUR OFFICE FOR SOME TIME. I AM CONCERNED ABOUT INFLATION DOWN THE ROAD AS I THINK MOST PEOPLE ARE. OBVIOUSLY THE DOLLAR HAS COME BACK STRONGLY-- I'M NOT SURE THE MARKETS AREN'T THINKING THAT BECAUSE OF THE OUTBURST OF MANY PEOPLE AROUND THE WORLD AND AROUND THIS COUNTRY REGARDING WHAT THE FED IS DOING MAY COMPEL THEM TO STOP DOING THAT AND SO YOU ARE SEEING THE DOLLAR STRENGTHEN RIGHT NOW. BUT LOOK. IT IS GENERATED BY A CONCERN I HAVE HAD FOR EVER SINCE I'VE BEEN ON THE BANKING COMMITTEE. IT JUST SEEMS LIKE A CONFUSING MANDATE. I THINK NOW IS THE TIME FOR US TO FOCUS ON IT. I KNOW THAT MIKE PENCE, AS A RESULT OF OUR PRESS RELEASE TODAY, WE HEARD FROM HIM TODAY. I KNOW HE'S DROPPING A ONE PAGE BILL ON THE HOUSE I JUST BECAME AWARE OF. SO I THINK THE TIME IS RIGHT FOR US TO BRING CLARITY TO THE FED, GET THEM FOCUSED ON ONE THING, WHICH IS PRICE STABILITY AND HOW FAR WE GO WITH THAT IS PAGE TWO OF THE CONVERSATION.
FRANCIS: SENATOR CORKER, WOULD YOU SAY RIGHT NOW THAT YOU THINK THE FED HAS GONE TOO FAR?
CORKER: I DON'T THINK ANY OF US KNOW THAT, RIGHT? I MEAN, UNFORTUNATELY, YOU HAVE THIS COMPOUNDING EFFECT THAT TAKES PLACE AFTER THE ACTIONS ARE TAKEN. SO, YOU KNOW, INFLATION IS STILL LOW, OBVIOUSLY IT DID APPEAR THAT THERE WAS TOO MUCH DEVALUATION OF OUR CURRENCY, OBVIOUSLY THAT STRENGTHENED OVER THE LAST FEW DAYS, BUT I CAN'T SAY -- I DON'T KNOW THAT ANYBODY ACTUALLY KNOWS THE ANSWER TO THAT. I THINK THAT ALL OF US ARE CONCERNED THAT THESE THINGS GET OUT OF CONTROL.IT'S VERY DIFFICULT TO CONTROL THEM ONCE THAT OCCURS.

KUDLOW: BUT, SENATOR, WHY NOT GO STRAIGHT TO A HARD DOLLAR, STABLE DOLLAR, KING DOLLAR POLICY? WHY NOT REVISE THAT? WHY NOT LOOK AGAIN AT THE OLD BREAD AND WOODS DEAL THAT LINKED THE DOLLAR TO GOLD? THESE INFLATION INDEXES ARE BACKWOOD INDICATORS AND THEY'RE HIGHLY FLAWED.WHY NOT GO RIGHT TO A DOLLAR?

CORKER: WELL, YOU KNOW, LARRY, WE'VE OPENED THE DEBATE ABOUT THE FED MANDATE. WE'LL SEE WHERE IT GOES. RIGHT NOW, IT SEEMS TO ME THE SIMPLEST THING TO DO TO BRING CLARITY IS TO FOCUS ON PRICE STABILITY. WE MAY TAKE FURTHER STEPS. WE'RE BEGINNING THE DISCUSSION AND INTELLIGENT PEOPLE LIKE YOU AND OTHERS WILL BE WEIGHING IN AND WE THANK YOU FOR THAT.

REGAN: YOU KNOW SENATOR, THERE'S A SCHOOL OF ECONOMIC THOUGHT OUT THERE, SOME ECONOMIC THINKERS THAT BELIEVE THE FED ACTUALLY COULD BE, WELL MILTON FREEDMAN SAID THIS, REPLACED BY A COMPUTER. DO YOU BUY INTO THAT IN ANY WAY? YOU'RE TALKING ABOUT STRIPPING THEM OF ONE OF THEIR MANDATES. WHAT ABOUT GOING SO FAR AS BOTH THE MANDATES?

CORKER: I DON'T THINK I'M READY TO GO TO A COMPUTER-RUN WORLD. BUT THE WORLD IS EVOLVING. TECHNOLOGY IS EVOLVING. I THINK THE FED'S MANDATE SHOULD EVOLVE. AS FAR AS OTHER NATIONS DOWN THE ROAD, WE'LL HAVE TO SEE. BUT CERTAINLY, TO ME, THE MANDATE IS CONFUSING. IT SENDS MISLEADING INDICATIONS, I THINK, TO THE MARKETPLACE. IT CONFUSES THE FED GOVERNORS, TO ME, TO A DEGREE. AND WHAT WE NEED TO DO, AT LEAST, IS TAKE THIS FIRST STEP TOWARDS SIMPLIFYING WHAT THEIR MANDATE IS.

LIESMAN: SENATOR, YOU SAID YOU MET WITH FED CHAIRMAN BEN BERNANKE YESTERDAY AND I THINK WHAT YOU CALLED A LENGTHY MEETING. I'M ASSUMING YOU RAN THIS BY HIM. HOW DID HE REACT?

CORKER: YOU KNOW, I DON'T REALLY -- I NEVER REPEAT CONVERSATIONS THAT I HAVE IN PRIVATE WITH PEOPLE WHEN I'M TRYING TO GET INFORMATION. I THINK IT'S -- FOR THAT REASON, I GET A LOT OF INFORMATION THAT'S HELPFUL IN MAKING DECISIONS. BUT WE HAD A PRETTY WIDE-RANGING DISCUSSION ABOUT NUMBERS OF THINGS, CERTAINLY Q.E. 2 WAS A PART OF THAT. BUT THERE WERE NUMBERS OF THINGS THAT WE DISCUSSED AT THE TIME. AGAIN, WE'VE HAD CONCERNS IN OUR OFFICE FOR SOME TIME ABOUT THIS DUAL MANDATE AND JUST FELT LIKE NOW WAS THE TIME TO GO AHEAD AND GET THIS CHANGED. HOW FAR WE GO WITH THIS, WE'LL SEE. BUT CERTAINLY AT LEAST CHANGING IT TO A SINGLE MANDATE IS IN PLACE. I LEARNED A LOT FROM OUR CONVERSATION YESTERDAY. I DON'T KNOW WHAT THE FED'S REACTION EXACTLY WILL BE TO WHAT WE'RE SAYING. BUT HOPEFULLY IT WILL MAKE THEIR MISSION MUCH MORE SIMPLE BECAUSE, AGAIN, IT'S NOT UNLIKE -- I THINK BACK ABOUT FANNIE AND FREDDIE, HAVING THESE CONFUSING -- ON ONE HAND, THEY'RE THERE TO MAKE MONEY FOR THEIR STOCKHOLDERS. ON THE OTHER HAND, GENERATE HOUSING FOR EVERY AMERICAN. I THINK WHEN YOU GET INTO POLICIES LIKE THIS THAT CREATE CONFUSION --

LIESMAN: SENATOR?

CORKER: YEAH.

LIESMAN: I'VE HEARD FED OFFICIALS COMPLAIN ABOUT THE DIFFICULTY OF MEETING THE DUAL MANDATE. I WOULD NOT BE SURPRISED TO HEAR SOME SUPPORT FOR THE IDEA FROM THE FEDERAL RESERVE ITSELF.

CORKER: WELL, I THINK THAT WOULD BE GREAT. AND HOPEFULLY WE'LL HAVE A LOT OF SUPPORT FROM OUR COLLEAGUES. AND, AGAIN, AS THE COMMENTATORS ON YOUR PROGRAM HAVE A LOT OF FOLKS AROUND THE COUNTRY THAT WILL BE WEIGHING IN. I THINK WE BEGIN THIS DISCUSSION BUT VERY SOON BRING IT TO AN END AND PASS LEGISLATION, FOCUS ON A SINGLE MANDATE, BRING CLARITY TO OUR MARKETS.

REGAN: SENATOR CORKER, THANK YOU SO MUCH FOR JOINING US TODAY.

CORKER: THANK YOU.

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